Berlin has been facing soaring fuel prices and some of the world’s highest industrial energy costs
Germany’s prolonged energy crisis was caused by the loss of Russian gas supplies, Chancellor Friedrich Merz has admitted.
German industry has been hit particularly hard by soaring energy costs, which are now the third-highest in the world after those in the UK and Japan. Once Europe’s industrial powerhouse, Germany abandoned cheap Russian gas imports in 2022 while phasing out nuclear power in favor of renewables, driving up production costs and accelerating the decline of energy-intensive industries. Moscow has repeatedly said it remains ready to resume gas deliveries through the remaining string of the Nord Stream pipeline, but the offer has received no response from Berlin.
In an interview with ZDF on Sunday, Merz was responding to questions over unfulfilled campaign promises and low public trust in his government. The chancellor argued that Germany now faced “completely different” circumstances, citing the Ukraine conflict, the “challenge” posed by China, and the country’s “ongoing energy crisis due to the lack of Russian gas.”
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